Home prices are rebounding so much in some U.S. cities that property values are actually higher than they should be.

The City of Angels has gotten a little bit devilish when it comes to property values.

Asking prices for L.A. homes shot up 13.7% over the past year -- way above a 1.6% increase seen in rents.

Kolko attributes the rising prices to strong demand sparked by good job growth and plenty of real estate investors, coupled with inventory shortages caused by lots of "underwater" homes. Those are properties where the owners can't easily sell because they owe more on their mortgages than the homes are currently worth.

Still, Trulia calculates Los Angeles property values haven't come close to the 78% over economic fundamentals that they reached in 2006.